U.S. Dollar Pulls Back As Traders Bet On Dovish Fed: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

By:

Vladimir Zernov

Published: Sep 1, 2025, 16:59 GMT+00:00

Key Points:

EUR/USD climbed above the 1.1700 level as traders reacted to the Euro Area Manufacturing PMI report.
USD/CAD moved higher despite rising precious metals markets.
USD/JPY remained range-bound as traders waited for catalysts.

EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts

U.S. Dollar Is Under Pressure At The Start Of The Week

DXY 010925 4h Chart

U.S. Dollar Index is losing some ground as traders stay focused on dovish Fed policy outlook.

In case U.S. Dollar Index manages to settle below the 97.50 level, it will head towards the nearest support, which is located in the 97.10 – 97.30 range.

EUR/USD Gains Ground As Manufacturing PMI Beats Estimates

EUR/USD 010925 4h Chart

EUR/USD moved higher as traders reacted to the Euro Area Manufacturing PMI report. The report showed that Manufacturing PMI increased from 49.8 in July to 50.7 in August, compared to analyst forecast of 50.5.

Currently, EUR/USD is trying to settle above the resistance at 1.1685 – 1.1700. In case this attempt is successful, EUR/USD will move towards the next resistance level at 1.1785 – 1.1800.

GBP/USD Attempts To Settle Above 1.3550

GBP/USD 010925 4h Chart

GBP/USD tests new highs despite the weak UK Manufacturing PMI report. The report showed that UK Manufacturing PMI decreased from 48.0 in July to 47.0 in August, compared to analyst consensus of 47.3.

A move above the 1.3550 level will open the way to the test of the resistance level at 1.3580 – 1.3600.

USD/CAD Moves Higher Despite The Strong Rally In Precious Metals Markets

USD/CAD 010925 4h Chart

USD/CAD found support in the 1.3735 – 1.3750 range and is trying to gain additional upside momentum. Rising precious metals markets did not provide sufficient support to Canadian dollar in today’s trading session.

If USD/CAD stays above the 1.3750 level, it will head towards the 50 MA at 1.3821. RSI is in the moderate territory, and there is plenty of room to gain momentum in the near term.

USD/JPY Settled Below The 147.50 Level

USD/JPY 010925 4h Chart

USD/JPY remains stuck below the key resistance at 147.50 – 148.00 as traders wait for additional catalysts.

The technical picture remains unchanged as USD/JPY needs to settle above the 148.00 level to gain sustainable upside momentum in the near term.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Vladimir Zernovauthor

Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.

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